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V0725-25 16 April 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas en especie

Life private accident insurance constitutes species remuneration subject to IRPF

A foundation asks whether IRPF should be withheld on civil liability and accident policies for its employees. The DGT states that professional civil liability insurance is not remuneration, but accident insurance is, as it covers risks outside the scope of employment.

The question raised

Whether withholding tax or payments on account must be applied for Personal Income Tax (IRPF) purposes in the payrolls of the insured employees.

The DGT's ruling

Work accident or civil liability insurance premiums are not considered benefits in kind if they exclusively cover occupational risks. The accident insurance in question constitutes a benefit in kind because it covers contingencies outside of occupational activity, such as private life. This income must be valued at the cost to the payer and includes the obligation to perform withholding tax payments.

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